Maguire Properties Warns of Loan Defaults

Creditors to Get Seven Buildings With $1.06 Billion in Debt; Vacancies and Falling Rents Pressure Landlords

By

Christina S.N. Lewis

Updated Aug. 10, 2009 11:59 p.m. ET

(See Corrections & Amplifications below.)

Maguire Properties Inc., one of the largest office-building owners in Southern California, is planning to hand over control of seven buildings with some $1.06 billion in debt to creditors, the latest sign that rising vacancies and falling rents are causing stress in the commercial real-estate sector.

Maguire, which borrowed heavily during the go-go years to make disastrous...